A value of zero for the elasticity of supply of some product implies that
A)the supply curve is horizontal.
B)supply is highly responsive to price.
C)the supply curve is vertical.
D)the product will not be supplied at any price.
E)there is no supply.

Question

Quizplus · Accepted Answer

A zero elasticity of supply means that the supply curve is vertical, indicating that no matter how high the price, the quantity supplied remains the same. This could be because the production of the product is limited by a fixed quantity of inputs or resources, or because there are legal or regulatory constraints that prevent the supply from changing in response to price changes.

A Value of Zero for the Elasticity of Supply of Some